Over 55 - 20 years+ of service. If I get laid off can I still take my pension as a lump sum?
8 replies (most recent on top)
Short answer is yes; that is exactly what I did when I got the SISP package 'offer' in late April. Took the severance package, but also retired at the same time.
The reason I did it was simple, came down to two factors: (1) I don't trust Ford will be an independent company in 10 years' time, so took the lump sum pension now just to be safe. Had a neighbor that went through the GM Bankruptcy issue in 2008, and while he did not lose his job, he did lose his pension. (2) In my case, I was hired pre-2003...so I also get the benefit of being provided health care for the first few years of 'retirement' on the companies dime until age 62 (true, it is through the ObamaCare system with Via, but it is enough money to provide my wife and kids coverage) .
You will get to keep your corporate health care for 9 months at the discounted employee rate, just have to remember to pay for it every month, then can switch to the retirement option after that if you don't find a job by that point or want to stay retired. Good Luck!
Yes, if you are laid off you can also retire and get the lump sum or monthly benefit. I decided long ago that I will take the lump sum for several reasons including concerns with company viability, ability to control my money, and ability to leave an inheritance.
There is no one answer.
Step 1 - run your Ford pension #s
Step 2 - look up the PBGC pension limits for your age @ https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee
Step 3 - if your Ford monthly pension # is greater than what PBGC will insure, decide if you are wiling to risk the difference - if not choose Lump Sum
Step 4 - if you are not good with money, and your entire pension is insured, choose the pension. Be honest with yourself - if you are a big spender you might blow thru your entire lump sum in a few years
Step 5 - if you are good with money and want to leave an inheritance to your children, choose lump sum
Step 6 - if no clear cut decision consult with a financial advisor
Over 20 years but under 55?
You are stuck (unless they make done special offer).
Is Lump Sum the way to go? I've heard some say no..
What if over 20 years but not 55?
Over 55 you with 20yrs is probably 9 months pay. Lump sum yes.
Yes as long as you are 55 and have 10 years of service you can apply for retirement ang get your lumpsum.